Onsale and Egghead Head Down the Aisle
David Shabelman
07/14/99 - 10:33 AM EDT
SAN FRANCISCO -- Soft economic
data are lending a positive tone to the market early today, though gains have been stymied by a lack of progress from the bond market.
TheStreet.com Internet Sector index was up 6.13, or 1.5%, at 663.23 early today.
| Net/Tech Indices | | INDEX | CHANGE | % | VALUE | | TSC Internet |  
8.04 | +1.2% | 661.14 | | TSC E-Commerce |
0.5 | +0.4% | 114.72 | | TSC E-Finance |
13/16 | +1.3% | 90 3/8 | | Nasdaq |
11.00 | +0.4% | 2789.20 | |
Yet another Net-sector marriage was announced today, this time between online retailer and auctioneer
Onsale (ONSL Quote) and online computer and software retailer
Egghead.com (EGGS Quote). The deal is valued at approximately $400 million. Egghead.com shareholders will receive 0.565 share of Onsale for each outstanding share of Egghead.com. Based on Tuesday's closing prices, Egghead.com shares are valued at around 12.7125, a slight premium from its 12 1/16 closing price Tuesday.
In early trading, Egghead.com was up 1/4, or 2%, at 12 5/16. Onsale was down 15/16, or 4%, at 21 9/16.
TheStreet.com took an in-depth look at this week's deals in the Internet sector in a
piece earlier today.
There were
rumors Tuesday that
Yahoo! (YHOO Quote) was set to announce a stock split and those rumors proved true -- sort of.
Yahoo! Japan, a joint venture between Yahoo! and Japan's
Softbank, announced a 2-for-1 split while also reporting a profit of $2.1 million for the first quarter, according to
Bloomberg. Yahoo! also announced it had begun auctions at
Yahoo! Germany. Yahoo was up 3 5/16, or 2%, at 160 1/4 in early trading.
Also on the move was
Inktomi (INKT Quote). The stock has been weak after the company filed an offer Monday to sell 3.3 million shares. Today,
Banc of America began coverage of the stock with a buy rating and a 170 price target. It was trading up 5 15/16, or 4.7%, at 131 1/2.
Shares of
GoTo.com (GOTO Quote) were rallying after
Donaldson Lufkin & Jenrette, the lead underwriter for the GoTo.com IPO, initiated coverage with a buy rating and a six- to 12-month price target of 100. It was up 5, or 9%, at 59.
J.P. Morgan had positive things to say about
Network Solutions (NSOL Quote). Analysts reiterated a buy on the stock and a 150 price target. In a note today, analyst Raimundo Archibold Jr. wrote that he expects Network Solutions to launch its dot-com directory in the last week of July with an initial rollout of 1.5 million to 1.8 million businesses. Network Solutions was up 2 17/32, or 3%, at 76 1/2.
On the IPO front,
Goldman Sachs priced
Tibco Software's (TIBX:Nasdaq) 7.3 million-share IPO top-range at $15. The company's products allow computer applications to communicate over the Internet. Tibco is majority-owned by
Reuters (RTRSY Quote).
